Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698927068768.pdf (Micronesia, Federated States of)
FOURTEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA SECOND REGULAR SESSION, 2005 C.B.

NO.

14-72 A BILL FOR AN ACT To further amend title 53 of the Code of the Federated States of Micronesia, as amended, by amending sections 603 and 802 thereof to eliminate the earnings test for the surviving spouse benefit, and for other purposes.

BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.
Section 603 of title 53 of the Code of the 2 Federated States of Micronesia, as amended by Public Law No.

12- 3 76, is hereby further amended to read as follows: "Section 603.

Definitions.
Definitions.

In this chapter, unless the context otherwise requires, the following definitions shall be applicable: (1) 'Application' means the prescribed form or forms provided to individuals by the Social Security Administrator as the exclusive means by which an individual may apply for the payment of any benefit provided for in section 801, 802, 803 or 803A of this act.

(2) 'Became disabled' means the first month in which individual is under a disability.
(3) 'Board' means the Federated States of Micronesia Social Security Board provided for by section 701 of this subtitle.

(4) 'Child or spouse' means an applicant that the court of the State in which an individual was domiciled an CBL 14-81 C.B.

No.

14-72 at the time of his death has or would find to be the individual's child or spouse in determining the devolution of intestate personal property.
'Child' shall include only the deceased individual’s biological children and such adopted children whose confirmed petition for adoption by the wage earner has been presented to the Social Security Administration.

(5) 'Contributions' means the tax imposed upon income of covered employees and the tax imposed upon employers on account of wages paid to a covered employee.
(6) 'Disability' means inability to engage in any substantial gainful employment by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
(7) 'Earning test' means that an individual who receives a retirement[,] or disability[, or survivor] benefit and who works in covered or noncovered employment shall have his quarterly benefit reduced by one dollar for each two dollars earned in a quarter, except there shall be no reduction for the first $300 earned in a quarter.

The reduction shall be applied in one of the subsequent two quarters immediately after the quarter in which the earnings were made, or as soon as 2 of 7 C.B.

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14-72 possible thereafter.
(8) 'Employee' means: (a) any officer of a corporation; or (b) any individual who, under the usual common law rules applicable in determining the employer- employee relationship, has the status of an employee; or (c) any self-employed person who has at least one employee for whom he is required to report in a given quarter; or (d) any self-employed person who had more than $10,000 of annual gross revenue in the preceding calendar year.
(9) 'Employment' means any service by an employee for an employer incorporated or doing business within the Federated States of Micronesia employing him, irrespective of where such employment is performed, except family employment.

(10) 'Family employment' means employment of a worker a member of the household, a parent or a son or daughter except that the worker may apply to the Board for a determination that such employment is bona fide covered employment subject to this subtitle.
(11) 'Insured status' can mean any of the following: (a) 'Currently insured individual' means any 3 of 7 by C.B.

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14-72 individual who has had not less than eight quarters of coverage during the 13-quarter period ending with: (i) the quarter in which he died; or (ii) the quarter in which he became entitled to old age insurance benefits; or (iii) the quarter in which he became disabled, whichever first occurs.
(b) 'Fully insured individual' means any individual who has not less than one quarter of coverage for each year beginning after June 30, 1968, or for each year after attaining the age of 21, whichever is later, and up to but excluding the year in which he attained retirement age, became disabled, or died, whichever first occurred, except that in no case shall an individual be a fully insured individual unless he has at least 12 quarters of coverage.
(12) 'Quarter' and 'calendar quarter' mean a period of three calendar months ending on March 31st, June 30th, September 30th, or December 31st.

'Quarter of coverage' means a quarter in which the individual has been paid $50 or more in wages in employment subject to this subtitle.
(13) 'Wages' means remuneration paid subject to the provisions of this subtitle, including the cash value of all remuneration paid in any medium other than cash and 4 of 7 C.B.

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14-72 remuneration accruing to a self-employed person.
Remuneration accruing to a self-employed person shall be deemed to be twice the amount paid to the highest paid employee reported by the self-employed person in a quarter, with a maximum of $3,000 per quarter through September 30, 2003 and a maximum of $5,000 per quarter thereafter.
Remuneration accruing to a self-employed person who has no covered employees shall, for each quarter of a year, be deemed to be 2.5 percent of the gross revenue of the business for the previous calendar year, subject to a $3,000 maximum per quarter through September 30, 2003 and a maximum of $5,000 per quarter thereafter.

Remuneration paid for any service which is more or less than a whole dollar shall, as may be prescribed by regulations, be computed to the nearest dollar.
Wages shall not include: (a) that part of remuneration in excess of $3,000 through September 30, 2003 and in excess of $5,000 thereafter paid in a quarterly reporting period by one employer; (b) any payment on account of sickness or accident disability, or medical or hospitalization expenses made by an employer to or on behalf of an employee; (c) any payment made to or on behalf of an 5 of 7 C.B.

No.
14-72 employee or to the employee's beneficiary from a trust or annuity; (d) remuneration paid in any medium other than cash to an employee for service not in the course of the employer's trade or business or for domestic service in a private home of an employer; (e) remuneration paid for casual or intermittent labor not performed in the course of the employer's trade or business when such employment does not exceed employment in more than one week in each calendar month of each quarterly reporting period; and (f) remuneration from family employment subject to the provisions of this subtitle."
Section 2.

Section 802 of title 53 of the Code of the 15 Federated States of Micronesia, as amended by Public Law No.

12- 16 76, is hereby further amended to read as follows: "Section 802.

Surviving spouse benefits.

(1) Every surviving spouse who: (a) was married to an individual who died fully insured; and (b) files an application; shall be entitled to a surviving spouse insurance benefit[, subject to the earnings test] as defined in this subtitle.
Receipt of a surviving spouse benefit shall not be subject to the earnings test.

6 of 7 C.B.

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14-72 (2) Surviving spouse benefit payments shall be paid for each month commencing with the month of death of the fully insured spouse and ending with the month preceding the month in which the surviving spouse dies or remarries.
(3) Notwithstanding the provisions of subsections (1) and (2) above, retroactive payments shall be limited to the twelve (12) months immediately preceding the month in which the surviving spouse has submitted an application."

Section 3.

This act shall become law upon approval by the 12 President of the Federated States of Micronesia or upon its 13 becoming law without such approval.

14 15 Date: 9/9/05 Introduced by: /s/ Dion G. Neth Dion G. Neth of 7 C.B.

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